New figures have busted the myth that build-to-rent (BTR) homes are pricier than the PRS for many tenants.
The annual Who Lives in Build to Rent? report reveals that the percentage of income spent on rent in the sector has remained steady at about 30%, the accepted national affordability benchmark, and continues to account for a similar percentage of monthly outgoings as the wider PRS.
New analysis from the British Property Federation, Association for Rental Living and PriceHubble includes data from 36,600 BTR tenants and found that multifamily housing developments and single-family housing schemes are increasingly becoming the rental product of choice for many renters on a broad range of incomes.
The report also highlights BTR’s success at creating genuinely mixed income communities, with the most common income band for BTR remaining steady at £26,000-£50,000, accounting for 43% of residents compared to 45% in the PRS. Overall, incomes between BTR and PRS residents are comparable, but the most common income band for the PRS is slightly lower at £19,000-£25,000.
The earnings profile shows that single-family housing caters for those on lower incomes where 76% of renters earn below £38,000 (compared with 61% in the PRS and 38% in BTR) while the most common income band for renters in single-family housing is £19,000-£25,999, in line with the PRS.
As the cost of living remains high, money-saving onsite amenities such as a gym, zero deposit schemes, and inclusive utility bills are an attractive offer and for some renters, BTR can even provide better overall value, says the report.
Brendan Geraghty (main image), chief executive of the Association for Rental Living, believes it reinforces how BTR can consisently deliver attractive, secure homes for renter demographics that mirror the wider PRS.
“Looking ahead to the next five years and beyond, we would like to see the sector develop to make BTR even more accessible to more renters, across all demographics in the UK,” adds Geraghty.
Tags:
Comments